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U. S. NUCLEAR REGULATORY COMMISSION

OFFICE OF PUBLIC AFFAIRS, REGION I

475 Allendale Road, King of Prussia, Pa. 19406

CONTACT: Diane Screnci (610)337-5330/ e-mail: dps@nrc.gov
Neil A. Sheehan (610)337-5331/e-mail: nas@nrc.gov

or vld@nrc.gov


I-96-57                                                                         August 23, 1996
Contact:  Diane Screnci                                 FOR IMMEDIATE RELEASE
                Victor Dricks

            NRC STAFF PROPOSES TO FINE VERMONT YANKEE NUCLEAR POWER
            CORP. $50,000 FOR ALLEGED VIOLATION OF NRC REQUIREMENTS

     The Nuclear Regulatory Commission staff has proposed a $50,000 fine against
Vermont Yankee Nuclear Power Corporation for an alleged violation of NRC requirements
at its Vermont Yankee Nuclear Power Station in Vernon, Vermont.  

     The NRC staff conducted a special inspection June 3-14 to look into the
circumstances surrounding Vermont Yankee's discovery in April that it had failed to
analyze possible failure modes of emergency core cooling system equipment and the effect
on the system's performance.  Specifically, in its analysis of loss-of-coolant accidents,
Vermont Yankee did not consider all possible scenarios and how they would affect the
equipment necessary to recover from the accident. 

     In a letter to Vermont Yankee, NRC Region I Administrator Hubert Miller said the
NRC is concerned that the condition existed for 22 years without being identified during
previous analyses even though there was prior opportunity to do so.  But Miller also
recognized and commended the utility's project team that found the vulnerability.  

     The NRC staff also recognized Vermont Yankee's corrective actions as prompt and
comprehensive.  Since the NRC gave Vermont Yankee credit for both identifying and
correcting the problem, a civil penalty would not normally be issued in accordance with the
NRC's enforcement policy.  However, the NRC staff decided that the $50,000 civil penalty
was appropriate because of the length of time the condition existed and because the licensee
had prior opportunities to find the non-complying conditions.

     Vermont Yankee has 30 days either to pay the proposed fine or to request in writing
that part or all of it be withdrawn.